Thanks Grumpy.
A key point to note was the connecting rod bolt was loose and not snapped. It actually fell out of the rod end which made me immediately think of the engine not being assessbled correctly.
The broken piece in the 6th picture is a piece of the boss and nothing else.
1) The governor was installed properly before I stripped the engine
2) The engine had plenty of oil. Well it could have been filled up after the rod snapped, Who knows some owners don�t care of their machines.
I thought it might not be suitable for repair because of the minimal cost of a replacement block on ebay.
I was hoping you could provide some advice about getting the timing correct if I was in fact going to repair the engine and any other tricks about re-assembling the bottom ends. I�ll no doubt one day be repairing a bigger more worthwhile engine so your advice will come in handy. Ive watched some video�s and they are all slightly different in the way things are explained.